Nvidia to sink $5 billion into Intel's chip manufacturing business
The U.S. government has taken a significant step in the tech industry, investing $10 billion in Intel, making Intel's third-largest shareholder. This investment, however, is not related to any collaboration or partnership with Nvidia at this point.
Prior to the government's investment, Intel was struggling. The company was flailing, but the investment has brought a new lease of life. Lip-Bu Tan, Intel's brand leader, was not hired by another company last month as speculated. Instead, he was appointed as the new CEO of Intel in March 2025 and remains in that position.
The investment has resulted in a significant surge in Intel's share prices. The company saw its single biggest day gain since October 1987, with shares surging by up to 29%. On the other hand, Intel's rival AMD's share prices are down around 2.7% due to the deal.
Nvidia, a key player in the tech industry, announced a plan to acquire $5 billion worth of Intel's common stock. However, it's important to note that this does not involve Nvidia at this point.
In a separate development, Intel received an additional $2 billion investment from Japanese tech investment bank SoftBank. This investment will allow Intel to produce a custom x86 CPU for use in datacenters that Nvidia will integrate into its AI machines and sell to its customers.
The partnership between Intel and Nvidia, which is expected to be announced in the near future, aims to integrate NVIDIA's NVLink technology with Intel's chips. This collaboration will also see Intel creating new consumer chips that integrate its x86 CPUs with Nvidia's RTX GPU chips for use in a wide range of PCs.
Nvidia will purchase Intel's common stock at $23.28 per share. The partnership will involve Nvidia and Intel collaborating to develop custom data center and personal computer products.
The investment in Intel came weeks after President Donald Trump previously criticized Intel's CEO Lip-Bu Tan as "highly CONFLICTED". This investment can be seen as a reversal of fortunes for Tan, who faced questions from Senate Republicans over his alleged ties to companies connected to the Chinese Communist Party.
Despite the controversies, Tan remains at the helm of Intel, leading the company through this significant period of change and growth. The partnership with Nvidia and the investment from the U.S. government are expected to bring about a new era for Intel, with exciting developments and innovations on the horizon.
Read also:
- Exploring Harry Potter's Lineage: Decoding the Enigma of His Half-Blood Ancestry
- Elon Musk Acquires 26,400 Megawatt Gas Turbines for Powering His AI Project, Overlooks Necessary Permits for Operation!
- U Power's strategic collaborator UNEX EV has inked a Letter of Intent with Didi Mobility to deploy UOTTA(TM) battery-swapping electric vehicles in Mexico.
- Global Gaming Company, LINEUP Games, Moves Into Extensive Global Web3 Multi-Platform Gaming Network
